McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) reports
consolidated production for Q1 2019 of
26,789 gold
ounces and
703,217 silver ounces, or
36,166 gold equivalent ounces(1)(“GEOs”).
Consolidated Production
Summary
|
Q1 |
Full Year |
2018 |
2019 |
2018 |
2019 Guidance |
Gold (oz) |
35,069 |
26,789 |
135,203 |
162,000 |
|
Silver (oz) |
695,651 |
703,217 |
3,032,694 |
3,225,000 |
|
GEOs(1) |
44,344 |
36,166 |
175,640 |
205,000 |
|
(1) Using a 75:1 gold
to silver ratio. |
|
“I am very pleased to say that after a
tough start to the year at our Black Fox and Gold Bar mines, we
have delivered a strong close to the first quarter. In March, gold
production improved significantly at Black Fox, allowing us to
achieve 93% of our budgeted production for the quarter. The issues
that pushed the start-up of commercial production at Gold Bar from
Q1 into Q2 have largely been resolved. The San
José and El Gallo mines are
performing well and are on-track to deliver over 50% of our planned
2019 production of 205,000 gold equivalent ounces.
I’m excited about starting our exploration drilling programs in
Timmins and Nevada, which will generate results for the rest of the
year,” said Rob McEwen, Chairman and Chief Owner. |
|
Gold Bar Mine, USA
(100%)
The ramp-up of production at Gold Bar is
progressing and we are addressing the challenges with the crushing
plant. Several issues related to material handling have been
resolved and throughput at the crushing and stacking plant is
increasing. Other aspects of the mine are performing as
designed.
The first gold ingot was poured at Gold Bar on
February 16. Since then the mine has poured gold regularly with Q1
production totalling 2,052 gold ounces. Guidance
has been reduced by 10% as a result of the slower than expected
start-up. We expect Gold Bar to achieve commercial production
during Q2 2019, and produce 50,000 gold ounces during the full
year.
Our 2019 exploration budget for the Gold Bar
property is $5 million. Exploration drilling will target both near
surface and deep Carlin-type mineralization. Drilling is expected
to start in early May and continue throughout the rest of the
year.
Black Fox Mine, Canada
(100%)
Black Fox
produced 8,765 gold ounces in
Q1. In spite of the primary contractor-operated crushing plant
being shut down for 6 weeks in February and March due to a fire,
our team recorded strong production of 5,335 gold ounces in March,
and achieved 93% of our budgeted production for the
quarter. The crusher has been repaired and is now operating
normally and we maintain our guidance of 50,000 gold ounces for
2019.
Our 2019 exploration budget for the Black Fox
Complex is $17 million and includes surface and underground
drilling. Surface drilling with three drill rigs started up again
at the beginning of April, and we expect to announce initial
results in late May.
San José Mine, Argentina
(49%(2))
Our attributable production from San José was
10,559 gold ounces and 701,341
silver ounces, for a total of 19,910 GEOs in Q1.
Production at San José is typically lower in the first quarter due
to regularly scheduled maintenance. The mine is on-track to achieve
our full year guidance for 2019 of 92,000 GEOs. We received
approximately $2 million in dividends from our interest in San José
during Q1.
El Gallo Project, Mexico
(100%)
El Gallo produced 5,413 gold
ounces in Q1. El Gallo continues to recover gold from residual
leaching of the heap leach. During the quarter the process plant
underwent a small expansion to improve efficiency and enable faster
gold recovery.
Fenix Project
Work on the Fenix Project feasibility study and
permitting is progressing. We expect the feasibility study to be
complete in Q2 2019.
Potential Sale
As part of our capital allocation strategy we
are exploring the potential sale of our Mexican assets. We
anticipate that half of the net proceeds from the potential sale
would be used to advance our development projects, and the balance
would be used to retire a portion of our debt.
First Quarter Financial
Results
Operating costs for the quarter ended March 31,
2019 will be released with our 10-Q Quarterly Financial Statements
in early May.
ABOUT MCEWEN MINING
McEwen has the goal to qualify for inclusion in
the S&P 500 Index by creating a profitable gold and silver
producer focused in the Americas. McEwen's principal assets consist
of: the San José mine in Santa Cruz, Argentina (49% interest); the
Black Fox mine in Timmins, Canada; the Fenix Project in Mexico; the
Gold Bar mine in Nevada; and the large Los Azules copper project in
Argentina, advancing towards development.
McEwen has approximately 360 million shares
outstanding. Rob McEwen, Chairman and Chief Owner, owns 22% of the
shares.
Footnotes
- 'Gold Equivalent Ounces' are calculated based on a 75:1 gold to
silver ratio.
- The San José Mine is 49% owned by McEwen Mining Inc. and 51%
owned and operated by Hochschild Mining plc.All dollar amounts are
US Dollars.
Reliability of Information Regarding San
JoséMinera Santa Cruz S.A., the owner of the San José
Mine, is responsible for and has supplied to the Company all
reported results from the San José Mine. McEwen Mining’s joint
venture partner, a subsidiary of Hochschild Mining plc, and its
affiliates other than MSC do not accept responsibility for the use
of project data or the adequacy or accuracy of this release.
Technical InformationThe
technical contents of this news release has been reviewed and
approved by Chris Stewart, P.Eng., President & COO of McEwen
Mining and a Qualified Person as defined by Canadian Securities
Administrators National Instrument 43-101 "Standards of Disclosure
for Mineral Projects."
CAUTION CONCERNING FORWARD-LOOKING
STATEMENTSThis news release contains certain
forward-looking statements and information, including
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements and information expressed, as at the date of this news
release, McEwen Mining Inc.'s (the "Company") estimates, forecasts,
projections, expectations or beliefs as to future events and
results. Forward-looking statements and information are necessarily
based upon a number of estimates and assumptions that, while
considered reasonable by management, are inherently subject to
significant business, economic and competitive uncertainties, risks
and contingencies, and there can be no assurance that such
statements and information will prove to be accurate. Therefore,
actual results and future events could differ materially from those
anticipated in such statements and information. Risks and
uncertainties that could cause results or future events to differ
materially from current expectations expressed or implied by the
forward-looking statements and information include, but are not
limited to, factors associated with fluctuations in the market
price of precious metals, mining industry risks, political,
economic, social and security risks associated with foreign
operations, the ability of the corporation to receive or receive in
a timely manner permits or other approvals required in connection
with operations, risks associated with the construction of mining
operations and commencement of production and the projected costs
thereof, risks related to litigation, the state of the capital
markets, environmental risks and hazards, uncertainty as to
calculation of mineral resources and reserves, and other risks. The
Company’s dividend policy will be reviewed periodically by the
Board of Directors and is subject to change based on certain
factors such as the capital needs of the Company and its future
operating results. Readers should not place undue reliance on
forward-looking statements or information included herein, which
speak only as of the date hereof. The Company undertakes no
obligation to reissue or update forward-looking statements or
information as a result of new information or events after the date
hereof except as may be required by law. See McEwen Mining's Annual
Report on Form 10-K for the fiscal year ended December 31, 2018 and
other filings with the Securities and Exchange Commission, under
the caption "Risk Factors", for additional information on risks,
uncertainties and other factors relating to the forward-looking
statements and information regarding the Company. All
forward-looking statements and information made in this news
release are qualified by this cautionary statement.
The NYSE and TSX have not reviewed and do not
accept responsibility for the adequacy or accuracy of the contents
of this news release, which has been prepared by management of
McEwen Mining Inc.
Mihaela
IancuInvestor Relations(647) 258-0395 ext
320info@mcewenmining.com |
Facebookfacebook.com/mcewenrob
Websitewww.mcewenmining.com
Twittertwitter.com/mcewenmining |
150 King Street WestSuite
2800,P.O. Box 24Toronto, Ontario, CanadaM5H 1J9(866) 441-0690 |
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